MSTR Soars 45% on Bitcoin Boom—Q2 Earnings Could Hit $14B as Crypto Bets Pay Off

MicroStrategy's stock (MSTR) is mooning alongside Bitcoin—proving once again that corporate crypto gambles can outpace actual business fundamentals.

The Bitcoin Leverage Play

With BTC charging toward new highs, Michael Saylor's tech-turned-crypto-holding-company just turned its balance sheet into a rocketship. Analysts now project $14B in Q2 earnings—roughly 7,000% higher than their actual enterprise software revenue last quarter.

Wall Street's Reluctant Darling

Traditionalists grumble about valuation metrics while quietly doubling down on shares. 'It's not a bubble if the Fed keeps printing,' joked one hedge fund manager, adjusting his algorithmic long position.

The Bottom Line

When your treasury strategy outperforms your product line, you're either a visionary—or proof that 2025's market logic runs on hopium and memes.

TLDR

• MSTR stock increased by 8 percent as Strategy’s Bitcoin holdings gained significant value during the second quarter.
• The company is expected to report a $14 billion profit for Q2 due to Bitcoin’s 30 percent price surge since March.
• A recent accounting policy change now allows Strategy to reflect Bitcoin’s market value on its balance sheet.
• Strategy purchased additional Bitcoin in Q2 which contributed around $600 million in unrealized profits.
• The core software business is projected to generate $112.8 million in Q2 revenue with limited impact on total earnings.

MicroStrategy’s shares jumped 8% today after rising Bitcoin price pushed its Q2 profit projection near $14 billion. MSTR stock reacted to Bitcoin’s over 30% gain since March, lifting the value of its crypto holdings significantly. Analysts attribute this market movement to both Bitcoin’s price appreciation and a recent shift in accounting policy.

MSTR Stock Rises With Bitcoin Surge

Strategy holds over 528,000 Bitcoin, with a value exceeding $56 billion based on recent market prices. In March, the company valued these holdings at $43.5 billion, but Bitcoin’s strong rally changed that quickly. The increase added almost $14 billion in unrealized gains to Strategy’s books.

The company also bought more Bitcoin during Q2, which added another $600 million in potential profits. These additional purchases enhanced the company’s overall crypto exposure while drawing attention from large investors. As a result, MSTR stock gained further momentum in the quarter.

A new accounting rule now lets firms report bitcoin at market value, affecting Strategy’s income statement directly. This rule replaced the older model, which only showed profits after selling Bitcoin. Therefore, quarterly results now reflect crypto volatility more sharply and move with Bitcoin’s market swings.

Core Software Business Stays Flat as Crypto Dominates

Despite the crypto gains, Strategy’s software segment remains modest in revenue growth. Analysts estimate software revenue to be $112.8 million for Q2, which shows little impact on the overall earnings figure. Compared to the expected $14 billion profit, this contribution is relatively minor.

Still, Strategy’s stock has performed strongly due to Bitcoin’s outsized influence. In Q2, MSTR stock ROSE 40%, far surpassing the S&P 500’s 11% gain. This surge reinforces the idea that investors see the firm more as a Bitcoin proxy than a software business.

Since 2020, MSTR stock has gained over 3,300%, outpacing Bitcoin’s own 1,000% rise. This performance helped reinforce investor confidence despite criticism from skeptics. The company continues using stock and debt to fund Bitcoin acquisitions.

Preferred Shares and Institutional Interest Signal Aggressive Model

Strategy has issued preferred shares like STRK to support its crypto-buying strategy while offering attractive yields to investors. This approach signals a commitment to long-term Bitcoin exposure through diverse financial instruments. Institutions and crypto-aligned funds have shown renewed interest in these offerings.

MSTR stock continues to draw attention from bulls who favor indirect Bitcoin exposure with potential upside leverage. Meanwhile, skeptics like Jim Chanos argue the stock’s premium is excessive compared to buying Bitcoin outright. Nonetheless, Strategy’s financial structure remains aligned with Bitcoin’s performance.